FINDING 2024-001
Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting
Summary of Finding:
The City submitted four P&E reports during the audit period; however, the controls in place were not
effective to prevent, or detect and correct, errors. As a result, errors...
FINDING 2024-001
Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting
Summary of Finding:
The City submitted four P&E reports during the audit period; however, the controls in place were not
effective to prevent, or detect and correct, errors. As a result, errors in reporting were identified. The
current period and cumulative expenditures reported consisted of the amounts expended by the
beneficiaries who were awarded funds from the City, rather than total amounts expended to the
beneficiaries, resulting in current period expenditures and cumulative expenditures being incorrectly
reported on all four reports as follows:
Quarterly Report: October 1, 2023 to December 31, 2023
Current period expenditures were overstated by $666,417. Cumulative expenditures were
understated by $964,879.
Quarterly Report: January 1, 2024 to March 31, 2024
Current period expenditures were overstated by $860,312. Cumulative expenditures were
understated by $104,567.
Quarterly Report: April 1, 2024 to June 30, 2024
Current period expenditures were overstated by $104,567.
Contact Person Responsible for Corrective Action: Linda Moeller
Contact Phone Number and Email Address: 812-948-5333 and lmoeller@cityofnewalbany.com
Views of Responsible Officials and Explanation and Reasons for Disagreement:
We concur with the finding.
However, the issue and non-compliance deals with the interpretation of the federal rules
regarding the appropriate amounts to report and when to report them by subrecipients of
the monies.
The non-compliance is not related to policies or controls not being effective to prevent,
detect or correct errors. In fact, the reporting system initially implemented by the City and
put in the federal reports provided the actual expenditures for those periods by recipients
of the grants.
However, the City does agree that after full examination and review of the federal rules
the initial full amount of funds provided to the subrecipients should have been reported in
full versus the actual expenditures during the periods.
Description of Corrective Action Plan:
Current period and cumulative expenditures reported will consist of the amounts
advanced to subrecipients.
Anticipated Completion Date:
The City has already made this correction in its Quarterly Report July 1, 2024 to
September 30, 2024.